Acquisitions

RSG has maintained a consistent track record of new branch growth over its 30-year history. Acquisitions have become an increasingly important part of the company’s strategy for future growth. Currently, RSG, backed by private equity firm Clayton, Dubilier & Rice (CD&R), is financially strong and is actively looking for market-leading distributors across the United States.

The distribution industry for roofing and building materials has seen dramatic change in recent years and will continue to evolve, which can present challenges for independently owned and operated businesses. Joining the RSG team can offer an owner and his/her employees a number of benefits to address these challenges:

Consolidation and competition will become more intense, as signaled by the ABC-Bradco merger in 2010 and the increased acquisition activity among the national distributors. RSG can bring added security for you and your people, as well as provide leverage to maximize supplier relationships and enhance the bottom line.

RSG’s approach to making an acquisition starts with a blank piece of paper, recognizing that each owner has a unique situation and set of concerns. RSG is highly flexible with respect to financial structure, integration of the business, and post-transaction role of the seller.

RSG brings the advantages of a large national player, while still feeling like a small company. RSG takes pride in an enduring culture where much of the decision-making is entrusted to the branch leadership.

The pending increase to the capital gains tax rate in 2013 gives an added financial advantage to completing a transaction in 2012.

In evaluating potential acquisition opportunities, RSG considers the following as ideal criteria for a target company:

Market leader that ranks among the Top 3 in each of its markets.

Owner (or successor) plans to continue in a full- or part-time capacity post-transaction

Strong and committed management team and employees

Located in a market that has strong annual roofing sales

Geographic location consistent with RSG’s current foot print

Primary focus in roofing materials

Healthy mix of residential and commercial customers

For a confidential discussion to learn more about RSG, the acquisition process, and a company evaluation, please contact Jeff Clay, Vice President – Strategic Planning & Corporate Development at 214.956.5184 or jclay@rsgroof.com.